Kore Group Holdings, Inc. · NYSE:KORE
Kore — Q2 2023 Earnings Presentation
18 slides from Kore's earnings presentation, Aug 9, 2023
Slide 1: Second Quarter 2023 Earnings Presentation
Second Quarter 2023 Earnings Presentation August 9, 2023 © 2023 © 2023 KORE KORE
Slide 2: Disclaimers
Disclaimers Forward-Looking Statements Use of Non-GAAP Financial Measures This presentation includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private In addition to our results determined in accordance with GAAP, we believe the following non-GAAP measure
Slide 3: Objectives of Our Earnings Call
Objectives of Our Earnings Call Review key Provide financial Answer analyst announcements performance and investor overview and questions key metrics © 2023 KORE 3
Slide 4: Key Announcements
Key Announcements Closing the Acquisition of Twilio’s IoT Business Unit The acquisition of Twilio’s IoT business unit, which closed on June 1, 2023, accelerates KORE’s journey to becoming the world’s first IoT hyperscaler and creates a one-stop- shop for building, deploying, managing, and scaling Io
Slide 5: Summary – Q2 2023 Earnings & 2023 Outlook
Summary – Q2 2023 Earnings & 2023 Outlook Q2 2023 vs. Q2 2022 • Total revenue of $69.5 million vs. $70.9 million (-2%); +5% sequentially from Q1 2023 ‒ IoT Connectivity of $48.3 million vs. $44.7 million (+8%); +11% sequentially from Q1 2023 ‒ IoT Solutions revenue of $21.3 million vs. $26.2 million
Slide 6: Financial Highlights
Financial Highlights (Unaudited) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2023 2022 2023 2022 Revenue (In millions USD) Revenue % Revenue % Revenue % Revenue % IoT Connectivity $48.3 69% $44.7 63% $91.9 68% $88.8 64% IoT Solutions 21.3 31% 26.2 37% 43.6 32% 51.1 36% Total re
Slide 7: Financial Highlights (continued)
Financial Highlights (continued) (Unaudited) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (In millions USD) 2023 2022 2023 2022 Operating Expense $47.4 $43.2 $91.7 $84.1 Operating Loss ($9.6) ($5.9) ($18.3) ($13.1) Net Loss ($19.5) ($10.8) ($38.0) ($22.4) Adj. EBITDA $14.2 $16.8
Slide 8: Global Sales Pipeline as of June 30, 2023
Global Sales Pipeline as of June 30, 2023 Qualification & Technical Evaluation Stage Proposal Stage Total 1,488Pipeline Opportunities Contract Signed Stage $660 million TCV Beta Site Stage Total Closed Won Closed Won $32 million TCV © 2023 KORE 8
Slide 9: Key Business Successes
Key Business Successes Increasing Share of Wallet Cross-Selling IoT Solutions KORE secured contracts with TCVs of over $9 million, KORE won a $500,000 TCV engagement to support $6 million, and $1.5 million from customers in the fleet, IoT Managed Services for a usage-based insurer (UBI) asset tracki
Slide 10: Summary Q2 2023 Messages and 2023 Outlook
Summary Q2 2023 Messages and 2023 Outlook Added ~500k Added $32 million Increased Global Recession Accelerated IoT organic of TCV bringing Sales Pipeline to resistant with hyperscaler journey connections year-to-date TCV to almost 1,500 80%+ Recurring with acquisition of Total Connections $60 millio
Slide 11: Appendix
SILLllliiiiiiiiiiiiiiin: KORE.
Slide 12: Reconciliation of Net Loss to EBITDA and Adjusted EBITDA
Reconciliation of Net Loss to EBITDA and Adjusted EBITDA (Unaudited) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, (In millions USD) 2023 2022 2023 2022 Net loss ($19.5) ($10.8) ($38.0) ($22.4) Net loss margin (28.0%) (15.2%) (28.0%) (16.0%) Income tax benefit (0.5) (2.3) (0.9) (
Slide 13: KORE business model: offering high-demand IoT services
KORE business model: offering high-demand IoT services Product line Products Product description Primary pricing method IoT • IoT connectivity services offered through market leading KORE One™ IoT platform IoT Connectivity • Our IoT connectivity solutions allow devices to seamlessly and securely con
Slide 14: IoT use cases are everywhere… deployments are complex
IoT use cases are everywhere… deployments are complex • Sample IoT use cases • Top challenges in IoT deployments Connected Fleet Mgmt. Blood Sugar Monitors Lack of in-house IoT expertise and resources Inability to Challenges in Connected contextualize interoperability Home Security Gas Tank and anal
Slide 15: KORE is building the world's first pure-play IoT enabler
KORE is building the world’s first pure-play IoT enabler What we do for customers... Deploy Manage Scale Connectivity. How Solutions. we do it… Analytics. © 2023 KORE 15
Slide 16: Building a Pure Play IoT Company
Building a Pure Play IoT Company Industry Sectors/Verticals Current Future Connected Health Fleet Management, Remote Monitoring, Connectivity Resellers, IIoT, OEMs, Smart Cities, and IoT-enabled Telematics, Connected Home/Business Security, Failover/Primary, PaaS Smart Utilities etc. Clinical Drug T
Slide 17: Customer IoT Journey
Customer IoT Journey 1 IoT Strategy & End-to-end 2 Technology Evaluation, 3 IoT Connectivity, Device & Data 4 Deployment (forward 5 Operations Management & 6 Sustainment (reverse 7 Analysis & AIoT Security Selection, Dev Management logistics) Support logistics) Business Outcomes/ / Business Outcomes
Slide 18: KORE is the only pure play IoT enabler
KORE is the only pure play IoT enabler IoT Applications Analytics Visualization Enterprises KORE’s customers deliver end-to-end industry solutions. Unencumbered by solution management IoT & Enablement and deployment complexities, these customers can focus on their end customer experience Onboard Con